3 excellent ASX 200 growth shares with major upside potential: analysts

These ASX 200 growth shares have been named as buys…

| More on:
A share market analyst looks at his computer screen in front of him showing ASX share price movements

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Looking for ASX 200 growth shares to buy? Listed below are three that are rated as buys by analysts.

Here's why they could be top options for investors right now:

NextDC Ltd (ASX: NXT)

The first ASX 200 growth share that has been tipped as a buy is NextDC. It is a leading data centre operator with a growing portfolio of world class centres across Australia. The company is also looking at expanding into the Asian market in the near future, which could provide it with significant long term growth opportunities. Morgans is very positive on the company's outlook and is expecting another strong result in FY 2023 thanks to "structural demand for cloud and colocation [which] remains incredibly strong."

The broker has an add rating and $13.30 price target on the company's shares.

ResMed Inc. (ASX: RMD)

ResMed could be another ASX 200 growth share to buy. It is a medical device company with a focus on the sleep disorder treatment market. ResMed has been growing at a strong rate over the last decade thanks to the quality of its products and its large and growing market opportunity. The latter is estimated to comprise almost one billion people with sleep apnoea globally and a little under half a billion people suffering from chronic obstructive pulmonary disease (COPD). And with the majority of these people undiagnosed, ResMed has a long runway for growth.

Macquarie is bullish on ResMed and has an outperform rating and $37.75 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX 200 growth share that has been named as a buy is Xero. It is a provider of a cloud-based accounting solution used by millions of small businesses globally. From these subscribers, the company is generating significant recurring revenue. However, this revenue could still grow materially in the future. With 3.3 million subscribers and a total addressable market of 100 million according to Goldman Sachs, Xero has a huge growth runway over the next decade or two.

It is for this reason that Goldman Sachs has a buy rating and $115.00 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Nextdc and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 ASX 200 shares set to dominate the next decade

Let's see why these shares could be great long term picks for Aussie investors.

Read more »

A group of businesspeople clapping.
Growth Shares

3 ASX growth shares with 10-year compounding potential

Let's see which shares are being tipped as buys for growth investors.

Read more »

Woman happy and relaxed on a sofa at a shop.
Growth Shares

Are these 2 top ASX growth shares buys?

Are these high-flyers still buys?

Read more »

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

3 stellar ASX growth shares to buy with $7,000

Let's see why analysts are feeling bullish about these top stocks.

Read more »

A smiling man at a shop counter takes payment from a customer, with racks of plants in the background.
Growth Shares

2 ASX shares to buy and hold for the next decade

I’m optimistic about what these investments can deliver in a year.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Growth Shares

High-conviction ASX 200 shares with 10-year upside

Let's see why analysts think these shares could be great long term picks.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Growth Shares

The ultimate Australian stocks to buy and hold for 10+ years

These shares could be ultimate buys according to analysts.

Read more »

A smiling man take a big bite out of a burrito
Growth Shares

Looking for ASX growth shares? I rate these 2 as buys

I’m backing these investments to deliver big returns.

Read more »